AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO TENANT'S RIGHT TO EARLY LEASE TERMINATION.

Plain English Breakdown

The bill references that landlords may deduct reasonable expenses but does not explicitly state this as a requirement or right.

Tenant's Right to Early Lease Termination for Home Purchase

This act changes the rules about when a tenant can end their lease early if they are buying a home in Delaware.

What This Bill Does

• Changes the notice period from 30 days to 60 days for tenants who want to terminate their lease early to buy a house.
• Requires tenants to provide a signed agreement of sale along with the notice to end the lease.
• Clarifies that the lease ends after the 60-day period, unless both the landlord and tenant agree in writing to extend it.
• References that landlords may deduct reasonable expenses from the tenant’s security deposit if they need to rent out the property again.

Who It Names or Affects

• Tenants who want to end their lease early to buy a home.
• Landlords of rental properties.

Terms To Know

Agreement of Sale

A legal document that outlines the terms and conditions for buying or selling property.

Security Deposit

Money a tenant pays to the landlord at the start of a lease, which can be used by the landlord if the tenant damages the property or does not pay rent.

Limits and Unknowns

• The bill does not specify what happens if the tenant cannot provide an agreement of sale.
• It is unclear how this act will affect existing leases that do not include provisions for early termination to purchase a home.
• This act only applies to tenants in Delaware.

Official Summary Text

AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO TENANT'S RIGHT TO EARLY LEASE TERMINATION.
This Act is a Substitute for SB 34 and differs from SB 34 in the following ways:

• Moves the provision for lease termination to purchase a home from § 5314(b) of Title 25 to a new subsection (c) under §5314 of Title 25.
• Does not make technical changes to § 5314(b) of Title 25.
• Requires the tenant to give the landlord a signed agreement of sale at the same time the tenant gives the landlord notice of early lease termination to purchase a home.
• Changes the notice a tenant is required to give for terminating a lease to purchase a home from 30 days to 60
days.
• Clearly states that the lease terminates after the 60-day period.
• Allows the landlord and tenant to agree to extend the 60-day period by signing a written agreement.
• References that § 5514(c)(3) allows a landlord to deduct reasonable expenses, incurred in rerenting after early lease termination, from the tenant’s security deposit.
This Act allows a tenant to terminate a rental agreement early if purchasing a home by providing 60 days' written notice to the landlord, along with a copy of the agreement of sale. The 60-day period begins on the first day of the month after the day the notice is given, but the landlord and tenant may agree to extend the lease termination date past the 60-day period by written agreement signed by the landlord and tenant. This Act also references that a landlord may deducting reasonable expenses incurred in rerenting the premises, up to 1 month’s rent, from the tenant’s security deposit as provided under § 5514(c)(3) of Title 25.